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Chapter Fourteen. Communicating Customer Value: Integrated Marketing Communications Strategy. The Promotion Mix.
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Chapter Fourteen Communicating Customer Value: Integrated Marketing Communications Strategy
The Promotion Mix • The promotion mix is the specific blend of advertising, public relations, personal selling, and direct-marketing tools that the company uses to persuasively communicate customer value and build customer relationships
The Promotion Mix Advertising is any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor Broadcast Print Internet Outdoor The Promotion Mix
The Promotion Mix Sales promotion is the short-term incentive to encourage the purchase or sale of a product or service Discounts Coupons Displays Demonstrations The Promotion Mix
The Promotion Mix Public relations involves building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events Press releases Sponsorships Special events Web pages The Promotion Mix
The Promotion Mix Personal selling is the personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships Sales presentations Trade shows Incentive programs The Promotion Mix
The Promotion Mix Direct marketing involves making direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships—through the use of direct mail, telephone, direct-response television, e-mail, and the Internet to communicate directly with specific consumers Catalog Telemarketing Kiosks The Promotion Mix
Integrated Marketing Communications Consumers are better informed More communication Less mass marketing Changing communications technology The New Marketing Communications Model
Integrated Marketing Communications Integrated marketing communications is the integration by the company of its communication channels to deliver a clear, consistent, and compelling message about the organization and its brands The Need for Integrated Marketing Communications
A View of the Communication Process The Communication Process Message Media Sender Receiver Response Feedback
Steps in Developing Effective Marketing Communication AIDA Model Get Attention Hold Interest Arouse Desire Obtain Action Designing a Message
Steps in Developing Effective Marketing Communication Personal communication involves two or more people communicating directly with each other Face to face Phone Mail E-mail Internet chat Choosing Media
Steps in Developing Effective Marketing Communication Personal communication is effective because it allows personal addressing and feedback Control of personal communication Company Independent experts Word of mouth Choosing Media
Steps in Developing Effective Marketing Communication Opinion leaders are people within a reference group who, because of their special skills, knowledge, personality, or other characteristics, exerts social influence on others Buzz marketing involves cultivating opinion leaders and getting them to spread information about a product or service to others in their communities Choosing Media Personal Communication
Steps in Developing Effective Marketing Communication Non-personal communication is media that carry messages without personal contact or feedback, including major media, atmospheres, and events that affect the buyer directly Non-Personal Communication Channels
Steps in Developing Effective Marketing Communication The message’s impact on the target audience is affected by how the audience views the communicator Celebrities • Athletes • Entertainers Professionals • Health care providers Selecting the Message Source
Steps in Developing Effective Marketing Communication Involves the communicator understanding the effect on the target audience by measuring behavior resulting from the behavior Collecting Feedback
Setting the Total Promotion Budget and Mix Advertising reaches masses of geographically dispersed buyers at a low cost per exposure, and it enables the seller to repeat a message many times Shaping the Overall Promotion Mix The Nature of Each Promotion Tool
Setting the Total Promotion Budget and Mix Shaping the Overall Promotion Mix The Nature of Each Promotion Tool Personal selling is the most effective method at certain stages of the buying process, particularly in building buyers’ preferences, convictions, actions, and developing customer relationships
Setting the Total Promotion Budget and Mix Shaping the Overall Promotion Mix The Nature of Each Promotion Tool Sales promotion includes coupons, contests, cents-off deals, and premiums that attract consumer attention and offer strong incentives to purchase, and can be used to dramatize product offers and to boost sagging sales
Setting the Total Promotion Budget and Mix Shaping the Overall Promotion Mix The Nature of Each Promotion Tool Public relations is a very believable form of promotion that includes news stories, features, sponsorships, and events Direct marketing is a non-public, immediate, customized, and interactive promotional tool that includes direct mail, catalogs, telemarketing, and online marketing
Promotion Mix Strategies Shaping the Overall Promotion Mix